PBOC just dumped 2.1 trillion yuan via overnight reverse repos.
That's not normal liquidity management. That's "we have a problem" liquidity management.
When central banks move size in overnight facilities instead of term operations, they're papering over something acute. Either interbank markets are seizing or there's stress nobody's talking about publicly.
China's been running hot on credit for months while property and local government debt keep bleeding. Now they're flooding overnight money?
This is the kind of move that either stabilizes fast or becomes the footnote before something breaks. Watch CNY and their credit markets closely.
That's not normal liquidity management. That's "we have a problem" liquidity management.
When central banks move size in overnight facilities instead of term operations, they're papering over something acute. Either interbank markets are seizing or there's stress nobody's talking about publicly.
China's been running hot on credit for months while property and local government debt keep bleeding. Now they're flooding overnight money?
This is the kind of move that either stabilizes fast or becomes the footnote before something breaks. Watch CNY and their credit markets closely.